Calculating Tax

I'd ask for the head honcho if I were you!

I believe that I deal with the same tax office as Cuchulainn, and was told that the "head honcho" does not take phone calls from the public. I have been talking to various staff there, over the past 2 years, trying to get an issue resloved. Some of the staff agree with my theory, but seem unwilling to do anything about it because " the computer calculates the tax this way."
 
Cuchulainn, you are not entitled to Double Taxation credit in Ireland for tax suffered on the UK deposit interest. As you are (I assume) non-resident in the UK you are entitled to a refund from the UK authorities of the tax deducted from the UK deposit interest. Once it is refundable (whether refunded or not) the Irish Revenue should not grant you the credit.


Corcaioch: I fully agree. and in 2003 downloaded the form from the british revenue site. completed it and handed it into my local tax office with my returns for 2002 and 2003. ( they have to sign and stamp it and forward it to the british revenue on your behalf) when I got back the revelant p21's there was no uk interest shown and therefore no tax. I rang the office and a member of staff informed me ' you paid tax at 20% already and thats what the dirt rate is so I am just ignoring it' for some odd reason I accept this would also be the case in future years. as it turns out I have to commence drawing down this 'loan' note shortly in order for it to be tax efficient :rolleyes: . ie keep withdrawals under €1270 to avoid CGT)

Joe 1234. Yep I agree. same office.
for what its worth I have been on to the credit union league this morning and they are having a meeting with the revenue later this week and will clarify the position.
my understanding was that Charlie McCreevy was 'annoyed' that thousands of credit union customers were receiving tax free dividends and not declaring them. He went into talks with the credit unions to 'level' this pitch with other banks/building socities and the result was that every credit union member was asked to complete a form authorising the credit union to deduct tax at 20% ( dirt in effect) and that anyone who completed this form was not liable to further tax on the dividend/interest. anyone who decided not to complete this form was liable for tax at full rate ( provided they declared it of course) from my correspondence with the credit union it would appear they are of the same opinion and as I state above are going to raise the matter with the revenue later this week.


another small example: when I was in the tax office in January I tried to sort out junior cu no 2's tax cert. the tax officer informed me ' he will have to come in himself' we cant take any instructions from you. All I was going to do was divide up his allowances between employer 1 ( whom he was with for the past two years part time) and employer 2 whom he had just commenced with and was now going to be the major employer) .
came home. rang that 1890 number. got the letterkenny office ( asked naturally) and they did it over the phone. nothing could have been simpler.
 
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